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FCA accelerates crypto registration process
The UK financial watchdog has significantly shortened review times for crypto firm registrations, improving its acceptance rate after years of industry criticism. Since April the Financial Conduct Authority (FCA) has approved registrations for five firms, including major names such as BlackRock and Standard Chartered. At the same time, six applications were rejected, refused or withdrawn, according to data reported by the Financial Times.
Approval rates and application trends
The FCA's acceptance rate has climbed to about 45%, up from under 15% over the previous five years. Average processing times have dropped from roughly 17 months to just over five months for applicants in the past year, showing a marked acceleration in crypto regulation and digital asset oversight in the UK. Despite faster reviews, the total number of applications has fallen—from 46 in the year to April 2023 to 26 in the year to April 2025—and annual approvals dipped before recently picking up pace.
Regulatory context and next steps
All firms offering crypto asset services in the UK have been required to register with the FCA since 2020 and must meet anti-money laundering (AML) and counter‑terrorist financing standards. The FCA has added 55 companies to its register but remains cautious about market risks. It is preparing a full regulatory framework for digital assets planned for 2026 and has introduced supportive measures such as preapproval meetings, roundtables and webinars to help applicants meet compliance expectations.
Balancing baseline rules with sector-specific carve-outs
The regulator recently opened a consultation on whether crypto firms should face the same regulatory standards as traditional financial institutions while considering targeted carve-outs to reflect the sector's unique features. Some firms may be delaying applications until the new framework is finalised, anticipating clearer rules that could make operating in the UK more straightforward. Meanwhile, regulators in the US and EU have moved faster on products like Bitcoin exchange-traded funds, increasing pressure on the UK to strike the right balance between investor access and market safety.
Source: cryptonews
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